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Nexus Intelligence Research
Nexus Intelligence Research

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DeFi Smart Contract Vulnerabilities Audit Guide

Here are three specific DeFi smart contract vulnerabilities, described with technical precision suitable for inclusion in a professional security audit report.

1. Oracle Price Manipulation via Flash Loans

Vulnerability Type: Oracle Dependency / Price Manipulation

CVSS Severity: Critical

Affected Component: Price Feeding Module, Collateral Valuation Logic

Description:

The protocol relies on a single, centralized oracle or a thin aggregation layer (e.g., Chainlink) for asset pricing without implementing sufficient deviation filters or time-weighted average price (TWAP) mechanisms. An attacker can exploit the deterministic nature of on-chain price updates by using a flash loan to manipulate the spot price of an asset on a decentralized exchange (DEX) that serves as the oracle’s input source.

Attack Vector:

  1. The attacker borrows a large amount of ETH and a target asset (e.g., USDC) via a flash loan.
  2. They execute a series of swap

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